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07 Nov 2024, 06:42
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The Core Claim:
Executives' Assumption: The plan hinges on the belief that introducing new, little-known tropical fruit-flavored drinks in Country X will allow Fizzles Beverage Company to sell them at a higher price due to the lack of direct competition.
Underlying Reasoning: The assumption is that the unique nature of these tropical flavors, which competitors do not have, will attract consumers and justify the higher price.
What Casts Doubt on the Claim:
Focus of Doubt: The question asks what would most seriously weaken the idea that the company can sell the new drinks at a higher price based on the assumption that their uniqueness in flavor alone is sufficient.
Critical Weak Point: If something other than the specific fruit flavor (such as brand recognition or price sensitivity) primarily influences consumer purchasing decisions for fruit-flavored drinks, then the executives' assumption is flawed.
Key Insight:
What We Need to Find: Any evidence that suggests consumers prioritize other factors, like brand loyalty or pricing, over the novelty of flavors would undermine the plan's potential success. This indicates that even with unique flavors, the higher price may not drive sales as expected if consumers are not as influenced by flavor uniqueness as assumed.
We need to identify that consumer behavior does not align with the executives' reasoning that unique flavors alone justify higher pricing.
Executives' Assumption: The plan hinges on the belief that introducing new, little-known tropical fruit-flavored drinks in Country X will allow Fizzles Beverage Company to sell them at a higher price due to the lack of direct competition.
Underlying Reasoning: The assumption is that the unique nature of these tropical flavors, which competitors do not have, will attract consumers and justify the higher price.
What Casts Doubt on the Claim:
Focus of Doubt: The question asks what would most seriously weaken the idea that the company can sell the new drinks at a higher price based on the assumption that their uniqueness in flavor alone is sufficient.
Critical Weak Point: If something other than the specific fruit flavor (such as brand recognition or price sensitivity) primarily influences consumer purchasing decisions for fruit-flavored drinks, then the executives' assumption is flawed.
Key Insight:
What We Need to Find: Any evidence that suggests consumers prioritize other factors, like brand loyalty or pricing, over the novelty of flavors would undermine the plan's potential success. This indicates that even with unique flavors, the higher price may not drive sales as expected if consumers are not as influenced by flavor uniqueness as assumed.
We need to identify that consumer behavior does not align with the executives' reasoning that unique flavors alone justify higher pricing.
22 Sep 2025, 13:37
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Weaken the argument question
Deconstruct the argument:
Comp. want to incr profits with new exotic flvrs
1st in market = no comp = ability to sell for higher
A. The new fruit drinks would be priced significantly higher than other Fizzles fruit drinks with more conventional flavors. - This reaffirms the strategy outlined in the passage and does not provide any new information nor weaken the argument - Wrong
B. In a telephone survey, at least one of the consumers contacted said that they preferred many of the new flavors to all of the more familiar flavors. - No information provided on the number of consumers where feedback was received. Even if it was the majority, this would support the strategy outlined in the passage through a different means (flavour) and would not be considered as weakening the argument. - Wrong
C. To build widespread demand for the new flavors, Fizzles would have to launch an advertising campaign to familiarize consumers with them. - While an advertising campaign may introduce additional costs into the equation, we cannot infer the impact on overall profitability (the advertising campaign could be free and could be completely overshadowed by revenue growth from the new flavour). - Wrong
D. Consumers choosing among fruit-flavored drinks of different brands generally buy on the basis of name recognition and price rather than the specific fruit flavor. - This states that consumers focus on name recognition (familiarity) and price (low/competitive). This is the opposite of what the strategy is trying to implement with its expensive and new/exotic flavours. - Right
E. Few consumers who are loyal to a specific brand of fruit-flavored drinks would willingly switch to another brand that costs more. - We cannot infer whether this would have any impact on the strategy. Fizzles Bev Company may already have a majority market share. - Wrong
Deconstruct the argument:
Comp. want to incr profits with new exotic flvrs
1st in market = no comp = ability to sell for higher
A. The new fruit drinks would be priced significantly higher than other Fizzles fruit drinks with more conventional flavors. - This reaffirms the strategy outlined in the passage and does not provide any new information nor weaken the argument - Wrong
B. In a telephone survey, at least one of the consumers contacted said that they preferred many of the new flavors to all of the more familiar flavors. - No information provided on the number of consumers where feedback was received. Even if it was the majority, this would support the strategy outlined in the passage through a different means (flavour) and would not be considered as weakening the argument. - Wrong
C. To build widespread demand for the new flavors, Fizzles would have to launch an advertising campaign to familiarize consumers with them. - While an advertising campaign may introduce additional costs into the equation, we cannot infer the impact on overall profitability (the advertising campaign could be free and could be completely overshadowed by revenue growth from the new flavour). - Wrong
D. Consumers choosing among fruit-flavored drinks of different brands generally buy on the basis of name recognition and price rather than the specific fruit flavor. - This states that consumers focus on name recognition (familiarity) and price (low/competitive). This is the opposite of what the strategy is trying to implement with its expensive and new/exotic flavours. - Right
E. Few consumers who are loyal to a specific brand of fruit-flavored drinks would willingly switch to another brand that costs more. - We cannot infer whether this would have any impact on the strategy. Fizzles Bev Company may already have a majority market share. - Wrong
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